Public funding of open and freely used infrastructure is not State aid. Public funding of project-specific, dedicated or bespoke infrastructure is State aid. Public funding of infrastructure connecting public and private parts may be State aid if the relevant national rules require developers to bear the cost. Introduction The Commission has recently examined an infrastructure project in the vicinity […]
State Aid Law
Blog
State Aid Uncovered Blog
In Lexxion’s State Aid Uncovered blog, Prof. Phedon Nicolaides publishes weekly critical analyses of recent State aid judgments and decisions. Each post presents the key points of a court judgment or EU Commission decision, places it in the context of similar case law or practice, assesses the underlying reasoning and highlights any inconsistencies or contradictions.
Guest contributions from other State aid experts will also be published on the blog at irregular intervals to complement the content of the blog posts.
8. March 2016 |
State Aid Uncovered
by Phedon Nicolaides
4. March 2016 |
Guest State Aid Blog
by G. Guðmundsson
We are happy to welcome two young professionals on the State Aid Blog today. Guðmundur Guðmundsson and Amie Eliassen are trainees at EFTA Surveillance Authority in the Competition and State Aid Directorate and give their insights on working in this dynamic and multicultural work environment. You want to apply for a traineeship yourself? Read on for more information. The […]
3. March 2016 |
Guest State Aid Blog
by Lexxion Publisher
Find below the court’s diary for all State aid cases. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog. Tuesday 01/03/2016 Judgment in Case T-79/14 – Secop v Commission (General Court – First Chamber) Thursday 03/03/2016 Judgment […]
1. March 2016 |
State Aid Uncovered
by Phedon Nicolaides
A market investor carries out a thorough ex ante analysis of the prospects of an investment before it commits any money. Introduction In 2004, the European Commission concluded, in decision 2005/145, that France granted incompatible aid to Electricite de France [EDF]. The French government had converted tax liability into share capital in EDF. The Commission was of the […]
23. February 2016 |
State Aid Uncovered
by Phedon Nicolaides
A tax exception is normally a selective measure. However, exceptions which are open to all undertakings are not selective, even if they deviate from the standard tax rate or base. Exceptions which are open only to a few undertakings escape from being classified as selective only when the beneficiary undertakings are in a different legal or factual situation than non-beneficiaries. […]
16. February 2016 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of assets which are used exclusively by certain undertakings constitutes State aid. If the state chooses to fund certain assets or activities, then it must do so consistently in all regions and in relation to all affected undertakings. Introduction A typical mission of the state is to provide public goods. Normally public funding of public goods is […]
9. February 2016 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of public infrastructure is not State aid. Public funding of connections between public and private infrastructure is not State aid as long as it is open to all users and no fee is charged. Introduction Last week’s article examined the use of a port facility. This week the focus is on a related issue: investment in port […]
2. February 2016 |
State Aid Uncovered
by Phedon Nicolaides
The exclusive use of a public asset or an asset funded by public money may confer an advantage in the meaning of Article 107(1) TFEU if several competitors express their interest to use the same asset. Introduction As public authorities are becoming more aware that placing public assets at the disposal of undertakings can involve State aid, they increasingly […]
1. February 2016 |
Guest State Aid Blog
by Lexxion Publisher
Find below the court’s diary for all State aid cases. Would you like to write a comment on one of them? Please don’t hesitate and get in touch with us ([email protected]), we are happy to publish your comment on the blog Thursday 04/02/2016 Judgment in Case T-287/11 – Heitkamp BauHolding v Commission (General Court – Ninth Chamber) Judgment in […]
26. January 2016 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of non-economic activities does not create State aid problems when any related economic activities are clearly separated. The 2012 SGEI package can apply retroactively. Introduction Member States of the European Union are free to designate the services they consider to be in the general economic interest. However, the wide discretion they enjoy in this respect falls under […]
18. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Public service obligations must be entrusted by an official act and defined with sufficient precision. Imprecise definition of public service obligations makes it impossible to identify the costs which are caused by such obligations. Consequently, imprecise definition of public service obligations makes it impossible to grant compensation because subsidisation of non-eligible costs cannot be excluded. Compensation may not be granted […]
9. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Different interventions that aim to finance the same restructuring plan constitute a single measure. A private investor may consider a possible damage of its reputation from laying off workers but the damage has to be quantified. Finance support of employees provides an indirect benefit to the employer. Introduction In this article I review two similar cases: a judgment of […]
3. February 2015 |
State Aid Uncovered
by Phedon Nicolaides
Security of energy supply can be a service of general economic interest. Avoiding harm to the environment is not one of the principles that underpin the internal market and which may not be violated by State aid measures. Determining whether competition is distorted does not require definition of the relevant markets. This article examines two apparently different but in […]
26. January 2015 |
State Aid Uncovered
by Phedon Nicolaides
Public infrastructure which is not exploited for commercial purposes does not result in an advantage for its users. Undertakings which are subject to different regulatory requirements can be treated differently. Cross-border trade can be affected even when there is no direct provision of cross-border services. Introduction The Leipzig-Halle judgment of 2011 was a shock to public funding of infrastructure […]
19. January 2015 |
State Aid Uncovered
by Phedon Nicolaides
Public funding of infrastructure which is open to any user does not constitute State aid. Public funding for the upgrading/extension of infrastructure in view of expected increase in the number of users is not State aid as long as it is not designed for the specific needs of certain users.Fees charged to users of publicly-funded infrastructure must cover incremental costs […]
12. January 2015 |
State Aid Uncovered
by Phedon Nicolaides
Structural fund rules for the period 2014-2020 define ex ante conditionalities that have to be satisfied by Managing Authorities that use EU funds to grant State aid. The ex ante conditionalities aim to strengthen the administrative capacity of Managing Authorities to grant State aid correctly. The European Commission has issued guidance on arrangements that can lead to improved administrative capacity. […]
5. January 2015 |
State Aid Uncovered
by Phedon Nicolaides
A tax measure that applies to certain transactions is not selective if it does not preclude any company or type of asset. Conditions for the application of a tax measure may be justified by the logic of the tax system. The Commission may not use Article 107(3) to assess the compatibility with the internal market of a tax measure that […]
29. December 2014 |
State Aid Uncovered
by Phedon Nicolaides
The granting of a tax exception is often found to constitute State aid. But the non-levying of a tax may also fall within the scope of Article 107(1). Competitors have more rights when the Commission does not open the formal investigation procedure. IntroductionOn 25 November 2014, the Court of Justice, in case T-512/11, Ryanair v European Commission, annulled Commission […]
23. December 2014 |
State Aid Uncovered
by Phedon Nicolaides
Infrastructure projects which are economic in nature are subject to State aid scrutiny regardless of their importance. However, public funding of transport networks which are open to all users does not constitute State aid. Introduction State aid approval of important projects of common European interest is very rare. The joint Commission decisions SA.36558 and SA.38371 [Denmark] and SA.36662 [Sweden] concerning the […]
15. December 2014 |
State Aid Uncovered
by Phedon Nicolaides
When a public entity injects fresh capital in a company in which it is already a shareholder, the new capital does not constitute State aid when it satisfies three conditions: i) all shareholders contribute in proportion to the shares they own, ii) the private participation is simultaneous and iii) the private participation is economically significant. Introduction In this article […]